Bank Rule Change Could Help Struggling Neighborhoods

A new rule proposed by federal regulators would allow bank investments made for neighborhood stabilization efforts and donations of foreclosed properties to be count towards compliance with the Community Reinvestment Act.

The rule change is intended to give banks an incentive to increase investment in troubled areas.

"The agencies said under their proposed definition of 'community development,' a financial institution would receive favorable consideration for donating foreclosed properties to non-profit housing agencies in targeted, hard-hit areas.

'In addition, institutions would receive favorable CRA consideration if they provide financing for the purchase and rehabilitation of foreclosed, abandoned, or vacant properties,' the regulators said."

Thanks to The Overhead Wire

Full Story: New bank rule aims to stabilize neighborhoods

Comments

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $199
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $14.95 a month
Wood necklace with city map

City Necklaces

These sweet pendants are engraved on a cedar charm with a mini map of selected cities. The perfect gift for friends and family or yourself!
$28.00
Red necktie with map of Boston

Tie one on to celebrate your city

Choose from over 20 styles of neckties imprinted with detailed city or transit maps.
$44.95